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BatCo makes baseball bats. Each bat requires 2 pounds of wood at $18 per pound and 0.25 direct labor hour at $20 per hour. Overhead
BatCo makes baseball bats. Each bat requires 2 pounds of wood at $18 per pound and 0.25 direct labor hour at $20 per hour. Overhead is applied at the rate of $40 per direct labor hour. Assume the actual cost to manufacture 100 bats is $5,400. Compute the total cost variance and identify it as favorable or unfavorable.
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